Razor v. Hyundai Motor America

854 N.E.2d 607, 222 Ill. 2d 75
Illinois Supreme Court·Decided June 29, 2006·No. 98813·Published·Cited by 169 cases

Opinions

JUSTICE FREEMAN

delivered the judgment of the court, with opinion.

Chief Justice Thomas and Justices Fitzgerald, Kilbride, and Carman concurred in the judgment and opinion.

Justice McMorrow dissented from the denial of rehearing, with opinion.

Justice Karmeier dissented from the denial of rehearing, without opinion.

OPINION

This appeal involves the federal Magnuson-Moss Warranty—Federal Trade Commission Improvement Act (Act) (15 U.S.C. § 2301 et seq. (2000)) and the Illinois Uniform Commercial Code (UCC) (810 ILCS 5/1—101 et seq. (West 2000)). The only issues raised concern the propriety of the damages awarded to the plaintiff. The primary question is whether the circuit court acted properly in refusing to enforce a contractual clause prohibiting the award of consequential damages. There is also a sufficiency of the evidence challenge to the court’s award of warranty damages. We affirm in part, reverse in part, and remand.

BACKGROUND

Plaintiff Shante Razor purchased a new Hyundai Sonata from Gartner Buick, Inc. (Gartner), on August 4, 2001. At the time she purchased the car, plaintiff also bought an optional remote starter and alarm system from an “options” booklet shown to her by the Gartner salesman. Gartner subcontracted the installation of this starter to Professional Sound Installers (ProSound). Pro-Sound did not install it on the date plaintiff purchased her vehicle, but a few weeks later, on August 30, 2001.

The Sonata was the first new car plaintiff had ever purchased. It came with a five-year, 60,000-mile warranty, a copy of which was introduced into evidence. In pertinent part, the warranty provided as follows:

“WHAT IS COVERED
Repair or replacement of any component originally manufactured or installed by Hyundai Motor Company or Hyundai Motor America (HMA) that is found to be defective in material or workmanship under normal use and maintenance, except any item specifically referred to in the section ‘What is Not Covered.’
^ ^ ^
WHAT IS NOT COVERED
* Damage or failure resulting from:
—Negligence of proper maintenance as required in the Owner’s Manual.
—Misuse, abuse, accident, theft, water/flooding or fire.
❖ * *
—Any device and/or accessories not supplied by Hyundai.
* * *
* INCIDENTAL OR CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION, LOSS OF TIME, INCONVENIENCE, LOSS OF USE OF THE VEHICLE, OR COMMERCIAL LOSS.
* The duration of any implied warranties, including those for MERCHANTABILITY and FITNESS FOR A PARTICULAR PURPOSE, are limited to the duration of this limited warranty.
Some states do not allow limitations on how long an implied warranty lasts, or the exclusion or limitation of incidental and consequential damages, so the limitations or exclusions set forth regarding this limited warranty may not apply to you. You may also have other rights which vary from state to state.”

In late September 2001, plaintiff began experiencing difficulties with the vehicle. On September 26, plaintiff had the vehicle towed to Gartner for service because it failed to start when she turned the key. She experienced the same problem and again had the vehicle towed to Gartner for service on October 6, October 16, and October 25. On the latter occasion, Gartner kept the vehicle for more than two weeks, providing plaintiff with a rental car to use during the time the vehicle was out of her possession. Nevertheless, the problem happened again on November 21, the day before Thanksgiving, when plaintiff had taken the day off from work to go shopping for the holiday. After a technician came to her home and was himself unable to start the car, the vehicle was yet again towed to Gartner for attempted repairs.

Sometimes after being towed to Gartner the vehicle started normally, other times it did not. Gartner technicians attempted various different repairs on the different occasions that the car appeared before them, including replacing the starter, replacing the “ECU power relay,” replacing the remote starter with an updated system, and replacing the “trans range switch” and “starter relay.” Additionally, after the October 25 no-start, when the vehicle was kept for more than two weeks, ProSound removed the remote starter it had originally installed on plaintiffs vehicle and replaced it with an updated model. Plaintiff was not charged for any of the attempted repairs.

In December 2001, plaintiff filed suit against defendant, Hyundai Motor America (Hyundai). Plaintiff made claims against Hyundai pursuant to the Magnuson-Moss Warranty Act (15 U.S.C. § 2301 et seq. (2000)) for breach of written warranty and breach of implied warranty of merchantability. Plaintiff also alleged that Hyundai had violated the Illinois New Vehicle Buyer Protection Act (815 ILCS 380/1 et seq. (West 2000)).

The case initially went to arbitration. The arbitration panel found in plaintiffs favor, and entered an award of $6,500, plus attorney fees and costs. Hyundai rejected this award and demanded trial.

The case went to trial in February 2003. Plaintiff was the sole witness for her case, and most of the above undisputed facts are drawn from her testimony. In addition, plaintiff testified that she never saw the actual warranty until after she had purchased the car, because the warranty was contained in the owner’s manual, which she saw for the first time in the glove box of her vehicle when she drove it off the lot. Plaintiff’s purchase contract, a copy of which was introduced into evidence, does not appear to contain or refer to the vehicle warranty. When asked on cross-examination if she had seen the warranty on a placard at Gartner, plaintiff testified that she had not. Plaintiff testified that she had performed all required maintenance on her car, had never been in an accident or been the victim of vandalism, and that no one other than Gartner had ever performed any repairs on the vehicle.

During plaintiffs direct examination, defense counsel objected when plaintiffs counsel inquired regarding her purchase of prior automobiles. During a lengthy sidebar, counsel explained that he was attempting to lay a foundation in order to ask her how much the car’s value to her had decreased because of the problems she had with it. The court ruled that plaintiff could not answer such a question. The court indicated that plaintiff could testify “as to what her feelings were, what her frame of mind was and the impact of the slow [sic] start situation on her personal feelings.

Free access — add to your briefcase to read the full text and ask questions with AI

Razor v. Hyundai Motor America, 854 N.E.2d 607, 222 Ill. 2d 75 (Ill. 2006).

854 N.E.2d 607 (Razor v. Hyundai Motor America) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Edson v. Horwich
2024 IL App (1st) 221877-U (Appellate Court of Illinois, 2024)
Anderson v. Nelsen
2023 IL App (4th) 220801 (Appellate Court of Illinois, 2023)
Gaylord v. Presence Pain Care
2023 IL App (3d) 210572-U (Appellate Court of Illinois, 2023)
Turner v. Concord Nursing & Rehabilitation Center, LLC
2023 IL App (1st) 221721 (Appellate Court of Illinois, 2023)
Rotan v. Unlimited Development, Inc.
2023 IL App (5th) 220182-U (Appellate Court of Illinois, 2023)
Alwan v. Kickapoo-Edwards Land Trust
2023 IL App (4th) 220088-U (Appellate Court of Illinois, 2023)
Ivey v. Transunion Rental Screening Solutions, Inc.
2021 IL App (1st) 200894 (Appellate Court of Illinois, 2021)
In re Marriage of Keller
2021 IL App (1st) 200739-U (Appellate Court of Illinois, 2021)
Taylor v. UDI4, LLC
2021 IL App (4th) 210057-U (Appellate Court of Illinois, 2021)
In re Marriage of Prill
2021 IL App (1st) 200516 (Appellate Court of Illinois, 2021)
Mathis v. Crawford
2021 IL App (5th) 190012-U (Appellate Court of Illinois, 2021)
Nutraceuticals v. ZAC Packing, LLC
Appellate Court of Illinois, 2021
Cadle Properties of Illinois, Inc. v. Fortune Investments, LLC
2021 IL App (1st) 200556 (Appellate Court of Illinois, 2021)
Zuniga v. Major League Baseball
2021 IL App (1st) 201264 (Appellate Court of Illinois, 2021)
Hartz v. Brehm Preparatory School, Inc.
2021 IL App (5th) 190327 (Appellate Court of Illinois, 2021)
Marmora Real Estate, LLC v. House Toppers Exteriors
2020 IL App (2d) 191096-U (Appellate Court of Illinois, 2020)
Omega Demolition Corporation v. Judlau Contracting, Inc
2020 IL App (2d) 190225-U (Appellate Court of Illinois, 2020)
Seyl v. Gross
2020 IL App (2d) 190371-U (Appellate Court of Illinois, 2020)
Shaker v. Butler
2020 IL App (1st) 190967-U (Appellate Court of Illinois, 2020)